With the average PPI refunds ranging from £2000 to £3000, PPI compensation is a huge boost to the financial well being of most families. Many people consider PPI refunds as a financial windfall and are using it for shopping, catering to the kids’ needs or to finance various educational pursuits. It is however important to focus on spending in areas which will enhance your financial well-being. For example, using PPI refunds to make some investments or finance a new entrepreneurial venture will be a prudent way to reinvest your money. Here a few tips on how you can use your PPI refunds.
Use PPI compensation for offsetting outstanding credit card or loan arrears
If you have some loan arrears with your bank, how far back can you claim PPI, you can enter an arrangement with your bank to clear those loans or credit card arrears with your PPI refund. This will free you or significantly reduce your future loan repayments thus freeing up your future income to be invested elsewhere.
Use PPI refunds to pay your mortgages and insurance premiums
If you have any insurance or mortgage arrears, you can use this windfall to clear your outstanding payments. You can also use the same to clear any outstanding utility bills, rent amongst other recurrent expenditures. The last thing you need is having to grapple with your bills after you have blown all your PPI refund.
Invest in stock
You can use your PPI refund in some long term investments in stock or government bonds. If you already have a portfolio, you can make additional investments with your PPI compensation and wait till they increase in value. You can also use your PPI refunds to create an emergency fund for any eventualities.
Start a business
Many families are now moving towards self employment as the effects of recession and the resulting unemployment and underemployment take effect. You can easily use your PPI refund as a seed capital for setting up a small business venture.
Obtain a certification
If you are in a professional field, you can use the PPI refunds to obtain additional certifications and improve your job prospects in preparation for the upturn in the economy. A new certification will add some value to your skills and enhance your resume as you look forward to new career prospects. You can also pay off some of your student loans with your PPI refunds.
You can also spend your PPI refunds in a manner which boosts the local economy and business prospects. If you have been working too hard this year, you can use your PPI refund on a holiday or some excursion across the UK. You can also shop in your neighborhood to boost the local business. With so many families facing harsh financial circumstances, you can use your PPI to offer your family and friends low interest loans for their autumn/winter shopping and shield them from the exploitative tendencies of pay day lenders.